Brookfield Doubles Down on Multifamily in Brazil

With a vast portfolio of properties in Brazil, totaling approximately 1.8 million square meters of leasable area and R$ 24 billion in assets, Brookfield Properties operates in the segments of corporate offices, industrial properties, multifamily residential properties, and malls.

In 2021, Brookfield entered the multifamily segment in Brazil, in which the company already has a strong presence in the North American market, with 172 properties and 60,000 residential units. The company's strategy in investing in multifamily properties aligns with recent research on the millennial generation, indicating that 80% of adults aged between 25 and 39 prefer to rent rather than buy their own homes. “The population's perception regarding buying or renting an apartment has been changing over the years. Many middle-class people today choose to rent. This is a global trend that is consolidating and has a very latent growth potential", explained André Lucarelli, Senior Vice President Investments at Brookfield, in an interview with our REsource team.

Brookfield’s plans to target multifamily for the middle-class in Brazil intensified during 2022 with the acquisition of Luggo's properties. The recently acquired portfolio included three fully operational multifamily properties located in São Paulo, Contagem (Minas Gerais), and Lauro de Freitas (Bahia), with an average occupancy rate of 90% and rents ranging from R$ 2,300 to R$ 2,600 (USD $466 to USD$527).

"By the end of this year, we will have around 1,800 units in operation spread across the cities of São Paulo, Campinas, Curitiba (PR), Lauro de Freitas (BA), and Contagem (MG). Last year, we acquired 2,000 units in the cities of São Paulo and Rio de Janeiro, distributed across eight projects that will be delivered between 2024 and 2026", said the executive. According to Lucarelli, Brookfield already has almost 7,000 contracted units.

Residents prefer amenity rich properties

Brookfield's multifamily assets offer shared amenities, such as a laundry room, gym, coworking space, swimming pool, rental cars, electric bicycles, a mini-market, and even a pay-per-use beer tap in the barbecue area. Some assets also provide services such as storage unit rentals and parking space rentals.